Who can open an
account?
|
NRI1 & PIO2
|
NRI1 & PIO2
|
Any person resident outside India.
[However,
individual of Pakistan nationality or entities of Pakistan, Bangladesh
nationality shall require RBI approval]
|
Any person
resident outside India
(who has
business interest in India)
|
Type of Account
|
Term Deposit only
|
Savings,
Current, Recurring, Fixed Deposit
|
Savings, Current, Recurring, Fixed Deposit
|
Current A/c
with certain conditions attached
|
Repatriation
|
Freely repatriable
|
Freely repatriable
|
Current
income is freely repatriable, provided all taxes are duly paid. Other
balances in NRO A/c are remittable upto USD 1 million per FY, subject to
payment of applicable taxes.
|
Repatriable subject to payment of
applicable taxes
|
Taxability on Interest
earned
|
Interest earned exempt under section 10(15)
(iv) (fa) of the Act
|
Interest earned is exempt under section
10(4) of the Act
|
Interest earned is taxable.
|
Not an Interest bearing account.
|
Change in residential status
|
Non-resident to resident:
FCNR (B) deposits may be allowed to
continue till maturity at the contracted rate of interest, if so desired by
the account holder.
Authorised dealers should convert the
FCNR(B) deposits on maturity into resident rupee deposit accounts or RFC A/c
(if the depositor is eligible to open RFC A/c), at the option of the account
holder.
|
Non-resident to resident:
NRE A/cs should be designated as resident A/cs
or the funds held in these accounts may be transferred to the RFC A/cs (if
the A/c holder is eligible to open RFC A/c), at the option of the account
holder immediately upon return of the account holder to India for good.
|
Non-resident to resident:
NRO A/cs
may be designated as resident rupee A/cs upon return of the account holder
for good.
Resident to Non-resident:
When a
resident Indian becomes a person resident outside India, his existing
resident account should be designated as NRO A/c.
|
SNRR A/c
may be designated as resident rupee A/c upon return of the account holder to
India for good.
|